ABC Systems Differ from Traditional Costing Systems Because ABC Systems

question 39

Multiple Choice

ABC systems differ from traditional costing systems because ABC systems use:

• A) Multiple activity cost pools and cost drivers to allocate overhead costs
• B) Multiple activity cost pools and cost drivers to allocate direct costs
• C) More automation and information technology to allocate overhead costs
• D) Less automation and information technology to allocate overhead costs

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Definitions:

Hepatic Artery

The major artery that supplies oxygenated blood to the liver, playing a critical role in liver function and metabolism.

Cystic Artery

A blood vessel that supplies oxygenated blood to the gallbladder.

Phrenic Artery

An artery that supplies blood to the diaphragm.

Superior Hemorrhoidal Artery

A blood vessel that supplies blood to the upper part of the rectum and anal canal, also known as the superior rectal artery.